Jurisdiction(s):
United Kingdom

FCA Consumer Duty (UK) for Payments and e-money Firms: Scope, Distribution Chains, Cross-cutting Rules, Four Outcomes, and 2024-2025 Supervisory Findings

Published by a LexisNexis Financial Services expert

Practice notes

This Practice Note considers the implications of the Financial Conduct Authority’s (FCA) Consumer Duty for payments and electronic money (or e-money) firms

For the purposes of this Practice Note, a payments firm is used as a broad term for a ‘payment service provider’ (PSP) under the Payment Services Regulations 2017, SI 2017/752 (PSRs 2017).

Authorised payment institutions
Small payment institutions
Registered account information service providers

References to an e-money firm mean entities within the Electronic Money Regulations 2011, SI 2011/99 (EMRs 2011).

Authorised electronic money institutions
Small electronic money institutions

In broad terms, the Consumer Duty (the Duty) captures firms undertaking regulated activities in the UK that fall within the FCA’s scope. Some payment and e-money firms will deal directly with retail customers, while others participate indirectly through a distribution chain that reaches a retail end user. The Duty extends to both scenarios; however, the degree to which it bites depends on whether the firm sets, or has a material influence over, outcomes for retail customers. This Practice Note examines the scoping assessment for payment and e-money firms, including...

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Frances Hodgkins

Linklaters

Frances is a Managing Associate in the Financial Regulation Group. She is experienced in advising a broad range of clients including retail banks, private equity investment houses, payment services firms and electronic money issuers on a mixture of transactional, advisory and contentious matters.Frances works with clients on a wide spectrum of topics, and has particular experience advising on authorisation applications, perimeter and supervisory matters, and conduct of business requirements.Frances has also advised on a number of regulatory change projects, including in relation to the implementation of the Second Payment Services Directive (PSD2) and forthcoming changes in the consumer finance space (in particular, in relation to buy-now-pay-later). She has gained significant first hand, practical experience of advising on (and assisting with the management of) such regulatory change projects having spent time on secondment to a large international bank’s regulatory change team and, prior to...

Arjun Lakhani

Linklaters

Arjun is a solicitor qualified in England and Wales and currently a Managing Associate in the Financial Regulation Group at Linklaters LLP. He has a particular focus on, and significant experience in, the fintech and payments sectors. He has advised a variety of fintech companies, banks, payment systems and payment service providers on EU and UK law and regulation, including complex issues arising from, the recast Payment Services Directive, the Electronic Money Directive, anti-money laundering rules, and the Interchange Fee Regulation. Arjun has also counselled clients on the increasingly regulated cryptoasset and consumer finance (including buy-now pay-later) sectors. Furthermore,Arjun has spent time on secondment at a designated payment system and an e-money institution. Arjun has also worked on a variety of other types of regulatory matters, including advising on perimeter issues and regulatory change projects such as the recast Markets in Financial...

Bethan Poole

Linklaters

Bethan is a Managing Associate in the Financial Regulation Group at Linklaters. She is experienced in advising a broad range of clients including banks, asset managers, financial market infrastructures and other financial institutions on advisory and contentious financial regulatory matters. Bethan advises on a range of regulatory matters, including sustainable finance and the implementation of EU SFDR, the EU Taxonomy, CSRD and UK TCFD reporting. Bethan is also experienced in advising on governance issues, SMCR, MiFID II, licensing and perimeter issues and market abuse issues. Bethan has significant experience advising e-money issuers, cryptoasset businesses and other fintechs on a wide range of issues including registration and authorisation, conduct of business requirements and compliance with the UK anti-money laundering regime. ...

Olivia Murphy

Linklaters

Olivia is a Managing Associate in the Financial Regulation Group at Linklaters. Olivia has significant experience advising a number of fintech and payments clients on a wide range of issues ranging from authorisation, to conduct of business requirements and compliance with the UK anti-money laundering regime. Olivia has advised payments firms across the payments ecosystem including payment systems, acquirers and electronic money issuers. Olivia has also advised a number of clients in the cryptoassets space. Her deep knowledge of the payments ecosystem is built on her experience on secondment to a large payments system. Olivia has also worked on a range of other types of regulatory matters including advising on perimeter issues, market abuse issues, regulatory authorisations, MiFID II and the UK client money rules. ...

Victoria McGowan

Linklaters

Victoria is a Managing Associate in the Financial Regulation Group at Linklaters LLP. She is experienced in advising a broad range of clients, including banks, asset managers, prop trading firms and financial market infrastructures on advisory, contentious and transactional matters.Victoria advises on a range of regulatory matters, including the regulatory perimeter, MiFID II/MiFIR, the UK and EU rules on sustainable finance, the UK and EU operational resilience and AI frameworks and the FCA’s Consumer Duty. In addition to her experience at Linklaters, Victoria spent a year working as a Judicial Assistant at the UK Supreme Court. ...

Web page updated on 21/05/2026

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